The URL can be used to link to this page

Home My WebLink About04-17-2018 Item 07 Transit Operations & Maintenance Contract Amendment Meeting Date: 4/17/2018 FROM: Daryl Grigsby, Director of Public Works Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: CONTRACT AMENDMENT – TRANSIT OPERATIONS & MAINTENANCE CONTRACT RECOMMENDATION 1. Authorize a budget amendment to the Transit Enterprise Fund to reflect new State of Good Repair operating assistance, and; 2. Authorize the City Manager to execute a contract amendment with First Transit Inc. with a new not-to-exceed amount as set forth in the Amendment to the Agreement No. 1 (Attachment A). DISCUSSION Background On June 16th, 2016, the City of San Luis Obispo entered into an agreement with First Transit Inc. for Transit Operations & Maintenance of the City’s public transit system (SLO Transit). The contract is for four base years with three possible one-year extensions. Contract costs have both fixed amounts (i.e. administrative, insurance premiums, etc.) and variable amounts (i.e. service hours). The original contract not-to-exceed amounts are reflective of prior funding sources and pre-Short-Range Transit plan implementation. Since executing the contract with First Transit, two years ago, there is new transit operating funding assistance, in the form of Senate Bill 1 – Road Repair and Accountability Act of 2017 (SB1), and the scope of transit service has evolved as staff implements the City’s adopted 2017-22 Short Range Transit Plan (SRTP) resulting in a change in the variable contract amounts. New Funding Source - SB1 On April 28, 2017 Governor Brown signed Senate Bill (SB) 1 (Chapter 5, Statutes of 20 17), known as the Road Repair and Accountability Act of 2017. SB 1 will provide over $50 billion in transportation funding across the state over the next decade to repair highways, bridges and local roads, to make strategic investments in congested commute and freight corridors, and to improve transit service. The direct allocation of transit funds will be under the State Transit Assistance (STA) Program formula to eligible agencies pursuant to Public Utilities Code (PUC) section 99312.1. From this, the City is anticipated to receive approximately $137,000 annually to supplement operational costs. Ultimately, these new revenues will support expanded SLO Transit to program additional bus services, thus helping our city continue to make progress towards mode shifts and reducing single use vehicle trips. Service Changes and Variable Cost Increase Effective June 18th, 2017 the City staff has begun the initial phases of implemention of the adopted City 2017-22 Short Range Transit Plan. In reflection of the now avialable SB1 Packet Page 33 7 operating assistance funds, staff aims to program these funds for additional bus service. As a result, the total amount of Revenue Hours will change as follows: Original Bid Doc: 34,546 Revenue Service Hours New Service Hours: 37,953 Revenues Service Hours These new projected Revenue Hours are broken down per route with a very modest contingency for additional and unanticipated transit service. And, as in past practice, the City will preserve the fiscal stewardship practice of paying the lesser amount of the calculated theoretical revenue hours versus actual revenue hours when processing monthly invoice and as a stop gap to excess service costs. The City believes this adjustment is neccesary in order to revise the current contracted stated “Not to exceed amount” to reflect the new service levels. Changes in Key Positions Further, considering the growing scale of the City’s Transit system, additional “Key Positions” (identified in italics and red font) are required to ensure the safe and reliable operation of the transit service. This has already been determined to have no impacts on the contract amount as the new Key position can be absorbed within existing fixed contract amounts. However, amending the contract memorializes this action. As noted and amended in the contract; G. Point(s) of Contact The CONTRACTOR must provide the CITY a current up-to-date list of point of contacts for key positions as described herein in this document. These include at a minimum: One (1) Resident General Manager, One (1) Maintenance Manager, One (1) Operations Manager and One (1) Safety Manager. These are key personnel who will be expected to provide primary contact with CITY staff and be responsible for management and supervision of CONTRACTOR’s employees. The names and resumes of these specific individuals and all other CONTRACTOR’s Management Staff shall be provided as part of the CONTRACTOR’s Proposal. Changes in Definition to Revenue Service Hours Finaly, the City wishes to amend following contract statement (identified in italics and red font) defining Revenue Hours to reflect transit routes that do not start or end at the Transit Center: A vehicle service hour is defined as a vehicle providing passenger service for one hour during the service hours specified herein. A vehicle service hour shall be deemed to have commenced when a vehicle leaves the CITY’s Transit Center (located at 990 Palm Street) or it’s designated (by the City) starting point to provide the services required herein and shall not include any out-of-service vehicle time used for vehicle operator breaks or lunches. A vehicle service hour shall terminate when a vehicle returns to CITY Transit Center, or it’s City designated terminus point, prior to any cleaning, servicing or fueling of the vehicle. Packet Page 34 7 The City believes this change in defination of Revenue Service Hour is neccesary to account for routes that may not neccesarily commence or end from the Transit Center, but rather, elswhere in the city (e.g. Trolley, Trippers, etc.). FISCAL IMPACT The City of San Luis Obispo is anticipated to receive approximately $137,000 annually to supplement operational costs. These new State revenues, additional fares from the approved (July 18, 2017) fare increase and modest additional support from Cal Poly University will allow the City to program $150,000 in additional revenue service, as prescribed by the City’s adopted Short-Range Transit Plan. The additional service requirements alter the City’s “not-to-exceed amounts” as identified in Table 1. If SB1 is appealed in the future, the contract with First Transit allows adjustment of services to address any potential revenue reductions. FY 17-18 FY 18-19 FY 19-20 Possible 3 Year Ext. Prior Amount $2,250,930 $2,330,088 $2,398,270 TBD New Amount $2,416,306 $2,485,876 $2,551,685 TBD ALTERNATIVE The City Council could deny the contract amendment, but staff does not recommend this as the City could lose the SB1 operating assistance funds if they are not programmed and this would severely limit the City ability to carry thru with implementation of the Short-Range Transit Plan. Attachments: a - Amendment Agreement With First Transit Inc. - Transit Operations & Maintenance Contract - Amendment No. 1 b - Exhibit A - Letter/MEMO to First Transit Inc - SLO Transit Contract - Amendment No. 1 Packet Page 35 7 Attachment A AMENDMENT TO AGREEMENT NO. 1 THIS AMENDMENT TO AGREEMENT is made and entered in on April 17th, 2018, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and FIRST TRANSIT INC. hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on June 16, 2015, the City entered into an Agreement with Contractor for Transit Operations & Maintenance services; and WHEREAS, the City desires to amend the scope of services to reflect the changes in Revenue Service Hours as a result of the implementation of Short Range Transit Plan; and WHEREAS, the City has submitted a proposal for this purpose that is acceptable to the Contractor. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. The scope of services and related compensation is hereby amended as set forth in Exhibit A attached hereto. 2. All other terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. APPROVED AS TO FORM: CONTRACTOR: _____________________________________ By: ____________________________________ City Manager, Derek Johnson Senior Vice President, Nick Promponas City of San Luis Obispo First Transit Inc. Packet Page 36 7 Exhibit A to Attachment A Packet Page 37 7 Packet Page 38 7 Packet Page 39 7 Packet Page 40 7 Packet Page 41 7 Page intentionally left blank. Packet Page 42 7